Cantor Fitzgerald Upgrades Trovagene To Buy, Bullish On Clinical Business

TrovaGene Inc’s TROV urine-based technology allows for a differentiated approach to cancer detection and monitoring, positioning the company to be “a key player in the cancer diagnostics market,” Cantor Fitzgerald’s Bryan Brokmeier said in a report. He maintained a Buy rating on the company, while raising the price target from $5 to $7.

Trovagene reported its 2Q16 total revenue at $0.10 million, below the consensus expectation of $0.30M. GAAP loss per share came in at $0.34, missing the consensus estimate of a loss per share of $0.31.

Clinical Business Accelerates

Trovagene increased the number of physicians on the platform to about 700 in 2Q16, from 550 at the end of the prior quarter. Billable samples grew about 100 percent to an estimated 400, while the number of tests that were reimbursed also increased by an estimated 300 percent, analyst Bryan Brokmeier mentioned.

Related Link: Trovagene Reports Q2 EPS $(0.34) vs $(0.31) Est., Sales $104K vs $270K Est.

“Though clinical testing revenue is still relatively small, we expect it to continue accelerating, driven by the expanded salesforce, recently presented clinical validation data, and the company’s focus on EGFR mutations in lung cancer,” Brokmeier wrote.

Trovagene is targeting new biopharma agreements, which may provide new paths to revenue growth as well as potential catalysts in the back half of this year, the analyst stated.

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